Oil India Intensifies Upstream Growth with New Acreage, AI, and Policy Reforms

Published By DPRJ Universal | Published on Wednesday, 4 February 2026

Oil India Limited is expanding its upstream operations across Northeast, Rajasthan, and offshore areas to boost domestic hydrocarbon production and reduce import dependence. The strategy includes securing new acreage through OALP and DSF rounds, leveraging AI and digital technologies for improved efficiency and reservoir management, and capitalizing on favorable government policy reforms. This multi-pronged approach aims to unlock new reserves, enhance operational performance, and strengthen India's energy security, positioning OIL for sustained growth in exploration and production.

Oil India Limited (OIL) is implementing a comprehensive upstream growth strategy focused on significantly enhancing India's domestic hydrocarbon production and reducing reliance on imports. The company is ramping up investments and exploration and production (E&P) activities across key regions including Northeast India, Rajasthan, Cambay, Mahanadi, and offshore deepwater blocks, with recent promising gas discoveries noted in the Andaman and Nicobar Basin. A core component of this expansion is the aggressive acquisition of new acreage through government initiatives such as the Open Acreage Licensing Policy (OALP-X) and Discovered Small Fields (DSF) Round-IV, along with participation in coalbed methane blocks, designed to accelerate exploration and fast-track resource monetization.Simultaneously, OIL is embracing digital transformation, integrating artificial intelligence (AI) and advanced analytics into its operations. This technological integration aims to optimize critical processes such as reservoir modeling, drilling performance, and predictive maintenance, ultimately reducing downtime, lowering operating costs, boosting recovery rates, and improving overall asset efficiency. The company is also benefiting significantly from a supportive regulatory environment. Chairman Ranjit Rath highlighted that recent government policy reforms, including the opening of previously restricted 'no-go' areas and the Oilfields (Regulation and Development) Amendment Bill, 2024, have created a highly favorable investment climate, encouraging greater exploration and simplifying compliance. This strategic convergence of new acreage, advanced technology, and policy support is positioning OIL for sustained upstream growth, crucial for India's long-term energy security.